A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand for the magazine…

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A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The mini-mart purchases the magazines for $1.55 and sells them for $3.88. Any

magazines left over at the end of the month are donated to hospitals and other health care facilities. Modify the newsvendor example spreadsheet to model this situation. Use what-if analysis to investigate the financial

implications of this policy if the demand is expected to vary between 10 and 30 copies each month.

The demand must be at least

(Type a whole number.)

copies for the gasoline mini-mart to break even.

Newsvendor model spreadsheet

1 Newsvendor Model

2

3 Data

4

5 Selling price

6 Cost

7 Discount price

8

9 Model

0

11 Demand

12 Purchase Quantity

13

14 Quantity Sold

15 Surplus Quantity

16

17

Profit

D

$3.88

$1.55

SO

10

24

The formula for the quantity sold is =MIN(B11,B12).

The formula for the surplus quantity is =MAX(0,B12-B11).

The formula for the profit is =B14*B5-B12*B6.

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